Crypto casino founder Richard Kim has had his gambling spending spree confirmed by the SEC. The Securities and Exchange Commission has provided an enforcement action, which details Kim’s spending habits.
Kim has now been charged by the SEC for committing fraud by spending $3.7 million on gambling and failed trading.
As we’ve previously reported, the Zero Edge founder had spent his investors’ money on crypto gambling. The FBI provided a file also detailing what had happened, but it had no timeline, which the SEC has now pinpointed as a $3.7 million spending spree to have happened over a four-day period.
Kim spent the $3.7 million on “speculative cryptocurrency trades and gambling”, resulting in losing a vast majority of investor cash. His primary place to gamble was Shuffle.com, but he also lost money on futures trading.
The founder had confessed what had happened to his investors. However, by the time he’d gotten to admitting his ever-growing problem, he reportedly only had $460,000 of the cash left. The FBI estimates that he had moved $7 million between wallets, Shuffle.com, and futures trading.
SEC pinpoints Kim’s spending
In the SEC’s report, he had transferred “all of the approximately $3.8 million” to crypto accounts in his name. $2.6 million was diverted into his personal wallet, where it was lost on futures trading. While the FBI reports a much larger number in his gambling woes, the SEC is more concerned with investor funds.
$700,000 was used went to gambling, while $240,000 was placed into “certain unknown crypto asset wallets”. Another $99K was then placed into his personal bank account.
Zero Edge never made it to market, leaving an enormous hole in investor pockets. While Kim has been charged by the SEC, we’ve yet to see any other action taken by the US justice system at this time. Upon his original arrest by the FBI, Kim initially posted a $250,000 bond.
